10-QPeriod: Q1 FY2026

EVERSOURCE ENERGY Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 7, 2026For Securities:ES

Summary

Eversource Energy's (ES) Q1 2026 10-Q filing highlights a significant regulatory development concerning its Return on Equity (ROE) from the Federal Energy Regulatory Commission (FERC). FERC issued an order on March 19, 2026, finding the current base ROE unjust and unreasonable, and establishing a new, lower ROE effective retroactively from October 2014. This order mandates material refunds with interest, driven by the extended refund period, which adversely impacts Eversource's financial position, results of operations, and cash flows. The company is assessing the implications, including potential rehearing or appeal. Beyond the regulatory ROE issue, Eversource's market risk disclosures indicate a stable risk management framework. The company actively manages commodity price and interest rate risks through contractual arrangements and a predominantly fixed-rate debt structure, with no exposure to earnings loss from commodity contracts for its regulated entities. Credit risk is managed through diverse customer and supplier bases, and the company holds collateral for certain contracts. Internal controls over financial reporting remain effective, and no new material legal proceedings or risk factors, other than the FERC ROE matter, have been identified for the quarter.

Financial Highlights

45 data points
Beta

Revenue

$4.54B

Net Income

$608.72M

13.4% Net Margin

EPS (Diluted)

$1.61

Total Assets

$64.71B

Cash & Equivalents

$270.18M

Free Cash Flow

$315.01M

Financial Statements
Beta
Revenue$4.54B
Operating Expenses$3.43B
Operating Income$1.08B
Net Income$608.72M
EPS (Basic)$1.61
EPS (Diluted)$1.61
Shares Outstanding (Basic)376.03M
Shares Outstanding (Diluted)376.58M

Key Highlights

  • 1FERC Order on ROE: A significant order issued on March 19, 2026, mandates refunds due to an unfavorable retroactive adjustment of the base Return on Equity (ROE), material to the company's financials.
  • 2Reduced Risk Exposure in Operations: Regulated companies' commodity price risk is passed to customers, and all long-term debt as of March 31, 2026, was at a fixed interest rate, mitigating interest rate risk.
  • 3Active Credit Risk Management: The company manages credit risk through a diverse counterparty base and holds $32.6 million in collateral from counterparties and $17.2 million posted with ISO-NE.
  • 4Effective Internal Controls: Management has concluded that disclosure controls and procedures, as well as internal controls over financial reporting, are effective.
  • 5No New Material Legal Proceedings: No material changes to previously disclosed legal proceedings have been identified.
  • 6No New Material Risk Factors: Apart from the FERC ROE issue, no new material risk factors have been identified.
  • 7Limited Share Repurchases: Only 2,522 shares were purchased in March 2026 as part of 401k plan matching contributions, at an average price of $68.38.

Frequently Asked Questions

The primary financial impact stems from the FERC order on March 19, 2026, which found the company's base ROE to be unjust and unreasonable. This order necessitates material refunds with interest to customers, primarily due to the extended retroactive period dating back to October 2014. This will adversely affect Eversource's financial position, results of operations, and cash flows.

For its regulated companies, the economic impacts of energy contracts used to serve customers are passed through to customers, thus eliminating direct exposure to commodity price risk for these entities. Interest rate risk is significantly reduced because nearly all of Eversource's debt financings have fixed interest rates; as of March 31, 2026, all outstanding long-term debt was at a fixed rate.

Eversource manages credit risk by serving a wide variety of customers and transacting with diverse suppliers. For its regulated companies, credit risk from certain long-term or high-volume supply contracts is managed according to established practices, and as of March 31, 2026, $32.6 million in collateral (letters of credit or cash) was held from counterparties.

No. Management has concluded that the company's disclosure controls and procedures and internal controls over financial reporting remain effective. Furthermore, no new material legal proceedings have been identified, and there have been no material changes to previously disclosed legal matters.